The best car insurance companies in California for young adults are Wawanesa, USAA, and CAAA. The best car insurance for young adults in California offers great coverage at an affordable price, especially for young drivers with a few years of experience behind the wheel. Insurance companies cannot use your age as a determining factor in setting premiums in California. But they can consider how many years of driving experience you have, as well as how many years you have been continuously insured. This is why young adults still tend to pay more for car insurance than older, more experienced drivers.
Quotes for the same driver can vary by as much as $1,000 in California, so it’s important for young adults to compare rates for the cheapest insurance. And there are a few notable options to put at the top of the queue when doing so.
The Best Car Insurance Companies in California for Young Adults
Car insurance for a 25-year-old averages between $1,700 and $2,500 per year for full coverage. Although 25-year-olds still pay more for car insurance than the national average, their premiums decrease by 10% to 15% on average just for turning 25.
The exact amount you’ll pay for car insurance depends on the company, your location, the type of car you drive, the coverage limits you select, your driving history and many … read full answerother factors.
Is car insurance for a 25-year-old male more expensive?
Teenage and young adult males pay between 8% and 16% more than their female counterparts. The price gap becomes smaller the closer you get to age 25. By the time their 25th birthday rolls around, men pay around 1% to 3% more for car insurance than women, and prices continue to be pretty evenly matched from that age forward.
Average car insurance rates for 25-year-olds:
The best thing you can do to guarantee the best rate for car insurance is to shop around. You should compare rates from at least a few different insurers before making a decision.
Car insurance for a 21-year-old costs $2,400 to $3,000 per year on average, according to various estimates. That’s roughly $1,000 more than the average U.S. driver pays. Insurers charge more to cover young drivers because research shows they are more likely to be involved in car accidents. Also, since young male drivers statistically have more accidents than young female drivers, a 21-year-old male is likely to pay several hundred dollars more per year for car insurance than a 21-year-old female.… read full answer
If you’re 21 and you’ve had your insurance for a couple of years, you should notice that the price goes down each year. The good news is this will continue until premiums start to level off around age 30. If your budget is suffering now, however, there may be things you can do to reduce your rates.
Ways to Reduce the Cost of Car Insurance for a 21-Year-Old
Check if you can be covered under your parents’ policy if you live at home or are in college.
Keep your grades up to a 3.0 (B) average or better for a good-student discount of about 7%, depending on the insurer.
Ask about a safe-driver discount if you’ve had your license and a clean driving record for at least 3 years. This could save you 5%-10% (20% by state law in California).
Evaluate your coverage needs. The average annual cost for state-mandated minimum liability insurance is only about $875 for a 21-year-old. If you drive an older car, minimum coverage may be all you need.
Consider delaying a new car purchase until after you turn 25 years old, when you’ll see a major drop in your insurance rates.
Be sure to compare quotes among companies, as rates and discounts for young drivers vary from insurer to insurer. The General and Esurance tend to offer some of the best rates to younger drivers, including 21-year-olds, according to WalletHub's research.
Older cars are cheaper to insure than newer cars, all else being equal. Older cars are cheaper to insure main because they are less valuable, so an insurer won’t have to pay out as much in the event of a total loss. Plus, once the car falls below a certain value, comprehensive and collision coverages to protect the car itself will actually cost more than they’re worth. You can drop these parts of your insurance altogether and save money.… read full answer
But a car’s age actually has less of an impact on insurance premiums than its make and model. If your older car is a popular model with thieves, has hard-to-find replacement parts, or is a luxury car or high-end sportscar, it could cost more to insure than a brand-new car of a different make and model.
When your car is at a higher risk of being stolen, your premiums are likely to be higher, too. You may think that thieves love flashy sportscars, but many older cars are stolen to be dismantled for parts. Popular targets are chosen because their parts haven’t changed much over the years or because so many of them are still on the road.
Top 5 Most Stolen Used Cars (More Expensive to Insure)
1998 Honda Civic (1998)
1997 Honda Accord (1997)
2006 Ford F-150 (2006)
2004 Chevrolet Silverado
2017 Toyota Camry
There are other reasons an older car could be more expensive to insure. For instance, parts can become hard to find for discontinued makers, like Saab, or less popular models. Trouble finding replacement parts drives up repair costs. That increases the price of insuring a vehicle.
So, in general, older cars are cheaper to insure. But if your older car is one of the special cases with higher insurance costs, shop around for the best price. Not all insurance companies treat all older cars the same.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.